Transocean (NYSE: RIG) stock price was down about 1% after the bell due to weak Q2 results. The company’s stock is down 23% this year and it touched a new 52-week low of $5.28 last month. Offshore drilling firms have been impacted by the ongoing trade wars and economic slowdown resulting in lower spending from the oil producers.
Revenue contracted 4% to $758 million coming in lower than $766.5 million expected by the street. The dip in sales was attributed to lower drilling revenues coupled with increase in expenses. Adjusted loss per share came in 34 cents comparing to 33 cents anticipated by the analysts.
Looking at the second quarter results, the offshore drilling sector is still not out of the woods due to tough macros which continues to act as a headwind for Transocean and its peers.
Average daily revenues rose 2% to $314,900 compared to $308,300 reported last year aided by improvements from the deepwater and midwater floaters.
On the Q2 performance, CEO Jeremy Thigpen said, “Despite some continued uncertainty around oil prices, offshore project economics remain compelling, driving increases in floater contracting and increasing day rates in both the harsh environment and ultra-deepwater markets.”
Thigpen also added, “Our industry-leading floater fleet, consistently strong operating performance, solid liquidity position, and enviable backlog, position us well as the market continues to recover.”
Contract backlog stood at $11.4 billion as of July 2019 compared to $11.7 billion reported last year and sequentially it decreased by 6% reflecting the industry weakness. Operating and maintenance expense surged 18% to $510 million due to increased maintenance expenses for servicing its fleet. Long-term debt contracted 2% to $9.37 billion.
Last quarter, the company reported 13.5% jump in revenues of $754 million, surpassing estimates. Adjusted loss per share came in at 30 cents failing to beat 29 cents per share expected by the street.
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
